Wait for Cree to Blink

By

Christopher Versace

| Feb 15, 2013 | 12:00 PM EST

It's been about six months since I last discussed Cree (CREE), the light-emitting diode (LED) and lighting company, even though the shares have been on fire. During that time, Cree shares catapulted higher and recently peaked at $45.50 -- up some 60%, compared with 8% for the S&P 500 and 5.6% for the Nasdaq Composite. That's a home run for a company that's poised to benefit from exploding LED lighting demand as LEDs inch closer to crossing into the general illumination market.

One of the key concerns with an industry that is undergoing a significant tipping point is the competitive landscape. We've seen this a few times over the last 10 to 15 years. Back in 2001, when mobile demand did not live up to expectations, many compound semiconductor player shifted gears toward LEDs. While that meant good things for the LED capital-equipment companies, it eventually led to a flood of supply that tanked LED industry pricing....423 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.